Wealth management expert predicts unchanged interest rates

One industry commentator expects interest rates to remain unchanged ahead of today’s (July 8th) decision by the Bank of England Monetary Policy Committee (MPC).

Wealth management and investment is affected in both the short and long term by interest rates, so many industry professionals and individuals with private wealth may be awaiting the committee’s decision with some concern.

Charles Davis, managing economist at the centre for economics and business research (cebr), said uncertainty over the economic recovery combined with ’unprecedented’ measures to rapidly scale back public debt meant the Bank would be inclined to keep fiscal policy relaxed.

Last month, dissent was expressed in the MPC for the first time since interest rates were set at 0.5 per cent in March 2009, as Dr Andrew Sentance voted to raise the base rate by 25 basis points.

The wealth management specialist argued inflation had not been significantly affected by the recession and demand had recovered in the UK and overseas, therefore stimulus measures did not need to be so extensive. ADNFCR-2318-ID-19879780-ADNFCR